Absa’s Tanzanian Unit MD Mafuru Confirms His Resignation

Dec. 27 (Bloomberg) -- National Bank of Commerce Ltd.
Managing Director Lawrence Mafuru said he resigned to pursue
other interests, a week after announcing the unit of South
Africa’s Absa Group Ltd. plans to raise capital.

Absa, which owns 55 percent of NBC, said last week
shareholders are in talks to boost capital at the Tanzanian
lender to help it grow amid an increase in bad debts and
regulatory changes.

Mafuru said in an interview on Dec. 19 the lender is
considering boosting the capital it’s required to hold against
deposits by 4 percent by raising funds “internally” and a
decision will be made next month.

Bad debts increased at four of Tanzania’s top six banks by
assets in the three months through September, according to
Serengeti Advisors Ltd., a Dar es Salaam-based research group.
Impairments at NBC, the East African nation’s fourth-largest
lender, grew to 15 percent of total loans in the third quarter,
compared with 11 percent three months earlier, it said.

To contact the reporter on this story:
David Malingha Doya in Dar es Salaam via Nairobi at
dmalingha@bloomberg.net.